Citadel_ Triathlon _ Capstar Broadcasting Complaint by backgroundnow

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									2009-11-28

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA ____________________________________ ) UNITED STATES OF AMERICA, ) United States Department of Justice ) Antitrust Division ) Merger Task Force ) 4000 City Center Building ) 1401 H. St. N.W. ) Washington, DC 20530 ) ) Plaintiff, ) ) v. ) ) CITADEL COMMUNICATIONS ) CORPORATION ) 7201 W. Lake Mead Blvd. ) City Center West ) Las Vegas, NV 89128 ) ) and ) ) TRIATHLON BROADCASTING ) COMPANY ) 750 B Symphony Towers ) Suite 920 ) San Diego, CA 92101 ) ) and ) ) CAPSTAR BROADCASTING ) CORPORATION ) 600 Congress Ave. ) Suite 1400 ) Austin, TX 78701 ) ) Defendants. ) ____________________________________)

Civil Action No. 99-CV-01043 (Judge Hogan)

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AMENDED COMPLAINT The United States of America, acting under the direction of the Attorney General of the United States, brings this civil antitrust action to terminate a Joint Sales Agreement (“JSA”) between Citadel Communications Corporation (“Citadel”) and Triathlon Broadcasting Company (“Triathlon”) that eliminates competition in the sale of radio advertising time on certain radio stations in Colorado Springs, Colorado and Spokane, Washington. The United States alleges as follows: I. Nature of Violation 1. On or about December 15, 1995, Citadel and Triathlon’s predecessor corporation

(collectively, “the parties”) entered into a JSA. Under the terms of the JSA, Citadel sells advertising time for 14 Citadel and Triathlon radio stations that otherwise would have been in competition in Colorado Springs and Spokane.

2.

Under the JSA, Citadel sets prices and sells advertising time on the radio stations

subject to the JSA in both Colorado Springs and Spokane. Citadel also collects payments from advertisers, makes a monthly report to Triathlon, deducts expenses, and divides the profits between the parties. Citadel and Triathlon have operated under the JSA since 1995.

3.

In Colorado Springs, Citadel sells advertising on KKFM-FM and KKMG-FM --

which Citadel owns -- as well as KVUU-FM, KSPZ-FM, KVOR-AM, and KTWK-AM -- which Triathlon owns. Citadel later purchased KKLI-FM and also sells advertising on that station in Colorado Springs.

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4.

Citadel owns radio stations in Colorado Springs that control approximately 37%

of the radio advertising expenditures directed towards listeners in Colorado Springs, while Triathlon owns stations that control approximately 21%. When Citadel combines its and

Triathlon’s stations under the JSA, it controls approximately 58% of the radio advertising expenditures directed towards listeners in Colorado Springs.

5.

In Spokane, Citadel sells advertising under the JSA on KAEP-FM
								
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